CHAPTER XII — DETERMINATION OF TAX IN CERTAIN SPECIAL CASES
Case Laws & Commentary
SECTION 115 — TAX ON CAPITAL GAINS IN CASE OF COMPANIES [OMITTED]
Case Laws & Commentary (Income-tax Act, 1961 as amended by Finance Act, 2026)
A. STATUS OF THE SECTION
Section 115 stands OMITTED. The bare-Act omission note reads, verbatim: '[Omitted by the Finance Act, 1987, w.e.f. 1-4-1988.]'
Original marginal heading (verbatim): 'Tax on capital gains in case of companies.'
B. ORIGINAL SUBJECT, HISTORY & MIGRATION
B.1 What the section did
Section 115, until its omission with effect from 1 April 1988, prescribed the rate and manner of taxing capital gains in the hands of companies, complementing the (by-then omitted) section 114 which had dealt with non-corporate assessees. It formed part of the older architecture under which capital gains carried a distinct, concessional rate treatment separate from the ordinary corporate rate.
B.2 Omission and rationalisation
Section 115 was omitted by the Finance Act, 1987 with effect from 1 April 1988, as part of the wholesale rationalisation of the capital-gains rate scheme. From that point the rate of tax on companies' capital gains was governed by the unified capital-gains rate provisions, now consolidated in section 112 (which expressly addresses domestic companies in clause (1)(b) and foreign companies in clause (1)(c)) and, for STT-suffered equity gains, section 112A.
B.3 Where the subject-matter went
The taxation of companies' long-term capital gains is today found in section 112(1)(b) (domestic company) and section 112(1)(c) (foreign company), and in section 112A for STT-suffered equity LTCG; short-term equity gains are in section 111A. The concessional-rate idea that section 115 embodied survives in those provisions.
C. FINANCE ACT, 2026 - IMPACT NOTE
Section 115 remains omitted; the Finance Act, 2026 does not revive it. The live law on companies' capital gains is sections 112, 112A and 111A (see the dedicated files in this Chapter).
D. CASE LAW - CROSS-REFERENCE TO THE SUCCESSOR PROVISIONS
No subsisting case law turns on the omitted section 115. The relevant authorities are those on the successor rate provisions (sections 112/112A/111A), listed here as cross-references and clearly identified as such.
Held: Charge and computation in the capital-gains code are integral; failure of the computation machinery defeats the charge.
Relevance: Underpins every corporate capital-gains computation now made under sections 45-48 with the rates in section 112.
Candid note: No authority is cited under the number 'section 115'; the provision has been off the statute book since 1 April 1988. The cross-reference above is expressly an authority on the successor law and is not represented as a decision on the omitted section.
E. SOURCES & CITATIONS
Omission verified against the Income-tax Act, 1961 (Bare Act, as amended by the Finance Act, 2025), Chapter XII section 115 (omission note reproduced verbatim above). Successor-provision authority verified against publicly reported sources: CIT v. B.C. Srinivasa Setty (1981) 128 ITR 294 (SC). FA 2026 status confirmed against the firm's amendment tracker (no revival). Marginal heading reproduced verbatim: 'Tax on capital gains in case of companies.'
Caveat: Treatise-style commentary for practitioners and academic use; not legal opinion. Section 115 is omitted law retained for completeness; for live corporate capital-gains taxation refer to sections 112, 112A and 111A.
Case Laws & Commentary
SECTION 115 — TAX ON CAPITAL GAINS IN CASE OF COMPANIES [OMITTED]
Case Laws & Commentary (Income-tax Act, 1961 as amended by Finance Act, 2026)
A. STATUS OF THE SECTION
Section 115 stands OMITTED. The bare-Act omission note reads, verbatim: '[Omitted by the Finance Act, 1987, w.e.f. 1-4-1988.]'
Original marginal heading (verbatim): 'Tax on capital gains in case of companies.'
B. ORIGINAL SUBJECT, HISTORY & MIGRATION
B.1 What the section did
Section 115, until its omission with effect from 1 April 1988, prescribed the rate and manner of taxing capital gains in the hands of companies, complementing the (by-then omitted) section 114 which had dealt with non-corporate assessees. It formed part of the older architecture under which capital gains carried a distinct, concessional rate treatment separate from the ordinary corporate rate.
B.2 Omission and rationalisation
Section 115 was omitted by the Finance Act, 1987 with effect from 1 April 1988, as part of the wholesale rationalisation of the capital-gains rate scheme. From that point the rate of tax on companies' capital gains was governed by the unified capital-gains rate provisions, now consolidated in section 112 (which expressly addresses domestic companies in clause (1)(b) and foreign companies in clause (1)(c)) and, for STT-suffered equity gains, section 112A.
B.3 Where the subject-matter went
The taxation of companies' long-term capital gains is today found in section 112(1)(b) (domestic company) and section 112(1)(c) (foreign company), and in section 112A for STT-suffered equity LTCG; short-term equity gains are in section 111A. The concessional-rate idea that section 115 embodied survives in those provisions.
C. FINANCE ACT, 2026 - IMPACT NOTE
Section 115 remains omitted; the Finance Act, 2026 does not revive it. The live law on companies' capital gains is sections 112, 112A and 111A (see the dedicated files in this Chapter).
D. CASE LAW - CROSS-REFERENCE TO THE SUCCESSOR PROVISIONS
No subsisting case law turns on the omitted section 115. The relevant authorities are those on the successor rate provisions (sections 112/112A/111A), listed here as cross-references and clearly identified as such.
CIT v. B.C. Srinivasa Setty (1981) 128 ITR 294 (SC) (cross-reference - capital-gains machinery).
Held: Charge and computation in the capital-gains code are integral; failure of the computation machinery defeats the charge.
Relevance: Underpins every corporate capital-gains computation now made under sections 45-48 with the rates in section 112.
Candid note: No authority is cited under the number 'section 115'; the provision has been off the statute book since 1 April 1988. The cross-reference above is expressly an authority on the successor law and is not represented as a decision on the omitted section.
E. SOURCES & CITATIONS
Omission verified against the Income-tax Act, 1961 (Bare Act, as amended by the Finance Act, 2025), Chapter XII section 115 (omission note reproduced verbatim above). Successor-provision authority verified against publicly reported sources: CIT v. B.C. Srinivasa Setty (1981) 128 ITR 294 (SC). FA 2026 status confirmed against the firm's amendment tracker (no revival). Marginal heading reproduced verbatim: 'Tax on capital gains in case of companies.'
Caveat: Treatise-style commentary for practitioners and academic use; not legal opinion. Section 115 is omitted law retained for completeness; for live corporate capital-gains taxation refer to sections 112, 112A and 111A.